SRG breaks back below 50-day moving average
Seritage Growth Properties Class A (SRG) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
SRG finished Monday at 13.62 losing $0.53 (-3.75%), significantly underperforming the S&P 500 (-1.86%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SRG as at Oct 26, 2020):
Monday's trading range has been $0.69 (4.96%), that's slightly above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SRG.
Seritage Growth closed back below the 50-day moving average at 13.84. When this moving average was crossed below the last time on October 14th, SRG actually gained 1.35% on the following trading day.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 14.25 where further buy stops could get activated. As prices are trading close to October's high at 14.58, upside momentum might speed up should the share mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Seritage Growth. Out of 69 times, SRG closed lower 56.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.97% with an average market move of 0.39%.